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What is the word for a particular combination of goods and services that a
person could choose to consume?
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- Q. In an article about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise its price from 50 cents to 75 cents, which he estimated would bring in an additional $65 million a year. The paper's publisher rejected the idea, saying that circulation could drop sharply after a price increase, citing the Wall Street Journal's experience after it increased its price to 75 cents. What implicit assumptions are the publisher and the analyst making about price elasticity? Thank you for your answer.Suppose that there has been a dramatic decrease in demand for “regular meat”. In fact, consumerspreferred more organic meat or naturally raised meat. Hence, organic meat sells for a substantialpremium over regular meat. Draw a market model representing the changes in the market for organicmeat and the market for regular meat. Show a graph and explanation.Can you explain why the answer is E?
- How is Consumer demand for products quite different from demand in the business market?In an article about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise its price from 50 cents to 75 cents, which he estimated would bring in an additional $65 million a year. The paper’s publisher rejected the idea, saying that circulation could drop sharply after a price increase, citing The Wall Street Journal’s experience after it increased its price to 75 cents. 1- What implicit assumptions are the publisher and the analyst making about price elasticity?Which consumption theory best explain the consumption behaviour of consumers in our economy
- Consider the following graph, which shows the relationship between an individual’s income and the number of times he or she eats out each month. Hint: When answering the following, be sure to specify the appropriate units. The blue point already shown on the graph shows the data for Cho. According to the graph, Cho’s income is ______ (options: $6000 per month, $6000, $12, $12 per month), and she has _____ (options: 12 dinners out per month, 6000 dinners out, 12 dinners out, 6000 dinners out per month). Suppose Cho’s friend Bob has an income of $3,000 per month and has 6 dinners out per month. Plot this on the graph.How does a rational consumer, with given income and tastes, allocate his income among available goods and services?When goods are called homogenous. What does this actually means?